Ethereum Struggles to Sustain $4K Rally as Traders Remain Cautious

Ethereum (ETH) has surged 56% in the past month, but traders aren’t convinced a rally past $4,000 is coming soon. Despite steady inflows into ETH spot ETFs, derivatives data shows muted enthusiasm, with the perpetual futures funding rate falling to 9%, down from 19% earlier this week, reports Coin Telegraph.

«The absence of leverage appetite is notable given how much ETH has risen since early July,» one analyst noted. Currently, ETH trades around $3,791.

Investor caution may stem from weakening on-chain metrics. Ethereum’s total value locked (TVL) fell 11% in the last month, reaching a five-month low, while Solana and BNB Chain saw relatively better performance.

Ethereum also ceded its lead in decentralised exchange (DEX) volume, falling behind both Solana and BNB Chain in 30-day trading activity. BNB Chain led with $189.2bn in volume, versus Ethereum’s $81.4bn.

Even ETH whales and institutions appear to be waiting. The ETH futures premium has dipped to 6%, reflecting neutral sentiment despite corporate entities like Bitmine Immersion Tech and The Ether Machine accumulating large ETH reserves.

Some analysts believe corporate reserve buying could push ETH to $5,000, but for now, traders are unconvinced that $4K is within reach.

Kursiv Uzbekistan also reports that The White House released its much-anticipated crypto policy report this week, offering a broad framework for digital asset regulation but leaving Bitcoin advocates disappointed.